ROXAS, Isabela, Philippines—The Office of the Ombudsman has recommended the filing of malversation charges against former Isabela Gov. Maria Gracia Cielo Padaca, an official of President Benigno Aquino’s Liberal Party, and three other officials.
The case stemmed from a 2007 complaint filed by former Isabela Rep. Santiago Respicio, who said the provincial government, under Padaca, committed technical malversation when it released a P25-million loan to a private foundation.
The money was part of a P35-million loan from the Development Bank of the Philippines that was for agriculture-related projects of the Isabela government, Respicio said.
The resolution, issued and signed on Jan. 11 by Deputy Ombudsman Orlando Casimiro and received by Respicio here only on March 4, also recommended the filing of charges against Roxas Vice Mayor Servando Soriano and Dionisio Pine, manager of the Economic Development for Western Isabela and Northern Luzon Foundation Inc. (EDWINLFI).
<Strong>Deceased respondent </strong>
The late former provincial legal officer Johnas Lamorena was among the respondents.
The Ombudsman, however, dismissed Respicio’s claim that Padaca and the other officials were involved in illegal use of public funds, saying the allegation was without merit.
The resolution cleared Isabela treasurer Maria Theresa Flores and former treasurer William Nicolas, saying they only exercised “ministerial duty.”
Records showed the Isabela government in February 2006 released P25 million to EDWINLFI to implement the government’s Priority Hybrid Rice Program (PHRP). Under the program, the beneficiary farmers received financial assistance to buy hybrid rice seeds and fertilizers and to fund land preparation.
The foundation was chaired by Soriano, then a Roxas councilor, while Lamorena was a member of the board of directors.
Padaca did not take calls and reply to text messages on Wednesday. One of her political supporters in Isabela said the former governor is in the United States.
<Strong>No shady deal </strong>
But in her counteraffidavit, Padaca denied any irregularity.
She said everything was done above board as the loan was approved by Isabela board members in December 2005 and January 2006.
She said the provincial board also ratified the memorandum of agreement (MOA) between the Isabela government and EDWINLFI on Jan. 31, 2007.
In their joint counteraffidavit, Soriano and Pine denied any irregularity, too. They said they appeared before the provincial board to explain the program while board members deliberated on the MOA.
But the Ombudsman resolution said the P25-million loan was released to EDWINLFI “without stipulations in the memorandum as to the amount of the contract, the cost estimates and terms of reference … including terms of repayment of the funds in favor of the provincial government and accountability of EDWINLFI for such funds.”
It said the provincial government “deliberately [gave] preference to EDWINLFI.”